Shield AI, the U.S. defense startup, said on October 2 that it will bid on a planned Taiwanese Navy purchase of vertical takeoff drones and aims to lift Taiwan's share of its V-BAT drone's hardware components from 16% to 25%. Co-founder and President Brandon Tseng spoke at a media gathering in Taiwan.
Shield AI Will Bid For Taiwan Navy Drone Purchase
The Defense Ministry's 2027 budget proposal lists a Navy purchase of vertical takeoff and landing drones next year, an item outside observers believe could point to the V-BAT. Asked about details and the risk of budget gridlock in Taiwan's legislature, Tseng said he could not share much about the Navy but knows it wants such drones and that Shield AI will bid.
He called the V-BAT, a vertical takeoff reconnaissance drone, the best and most mature aircraft in the Group 3 class, able to fly autonomously and in teams even when communications are jammed. Shield AI now works closely with Taiwan's Coast Guard Administration and hopes to expand to the Navy and other services.
Radar Is Shield AI's Answer To Taiwan Strait Clouds
Tseng said Ukraine and Taiwan differ geographically but share similarities, and that Shield AI works closely with Ukraine's navy. Taiwan's thicker winter cloud calls for sensors that see through it, he said, and because the V-BAT carries radar, he expects it to operate in the waters around Taiwan.
The company says V-BAT drones flew reconnaissance and targeting missions with special operations forces in Ukraine that contributed to more than 21 strikes. It adds that the drone has helped the U.S. Coast Guard track and intercept people and drugs this year, with narcotics worth more than $1 billion seized.
Taiwanese Parts Make Up 16% Of V-BAT Hardware
Tseng said Shield AI wants to work with Taiwanese manufacturers. Taiwan now supplies 16% of the V-BAT's hardware components, and the target is 25%. The company's supply chain chief, identified only as Tracy and formerly of Starlink, says Taiwan has the best vendors.
Local Partners Include AIDC, NCSIST, And Thunder Tiger
Shield AI opened a Taipei 101 office in 2025. With Taiwan's Aerospace Industrial Development Corporation (AIDC), it supports V-BAT use in a Coast Guard shipborne drone project and has agreed to provide V-BAT support, maintenance and training in Taiwan.
With the National Chung-Shan Institute of Science and Technology (NCSIST), the military's main research and development arm, it put its Hivemind autonomy software into the Mighty Hornet III drone, and three aircraft completed an autonomous search mission. With Taiwanese firm Thunder Tiger, it built AI autonomy for the Sea Shark unmanned boat, tested off Pingtung at the end of July. Shield AI says Hivemind now runs on more than 40 unmanned systems.
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